Hospitality Distribution at a Glance: The Art (and Cost) of Getting Heads in Beds

Hospitality Distribution at a Glance: The Art (and Cost) of Getting Heads in Beds

Explore how modern hospitality distribution works, from OTAs and wholesalers to emerging direct-connect platforms like HyperGuest. This article breaks down the true cost of getting “heads in beds,” revealing how hotels can balance direct and indirect channels to maximize visibility, control, and profitability in the evolving world of hospitality tech.
by 
Enzo Aita
Supply
Technology
October 9, 2025

In hospitality, distribution is a bit like matchmaking, you’re trying to connect the right guest with the right room, at the right price, through the right channel... without giving away too much of the profit in the process.

And that’s where the eternal tango between Direct and Indirect channels begins.

The Indirect Route: The Necessary Middlemen

Indirect channels are like the friends who “introduce” you to someone, useful, powerful, but they’ll charge a finder’s fee.

Let’s break down the main players:

  • OTAs (Online Travel Agencies) – The heavy hitters: Booking.com, Expedia, Agoda, and their regional cousins. They bring massive visibility but take a 15–25% commission for the privilege.
    Think of them as the digital billboard of the hospitality world, bright, visible, but pricey to rent.

  • Flash Sale / Last-Minute Apps – High exposure, deeper discounts (sometimes 20–30%). Great for filling rooms last-minute, not so great for your ADR (Average Daily Rate).

  • Traditional B2B & Wholesalers – The “old-school” network of travel agents, tour operators, and bed banks. They may not be flashy, but they still move serious volume, especially for packages or group business.

  • Niche & Emerging Channels – The new kids on the block bringing innovation and connectivity to the forefront.

Platforms like HyperGuest are changing the game by offering direct connectivity between hotels and travel sellers, bypassing unnecessary layers of distribution.

Instead of paying steep commissions, hotels can negotiate rates directly with travel agents, TMCs, or tour operators, maintaining control, improving margins, and accelerating speed to market.

Think of it as the “distribution disruptor”, faster, fairer, and built for the connected era.

Check our Indirect Distribution Comparison Table here

The Direct Path: Owning the Relationship

Direct channels are where a hotel flexes its brand muscle, more control, better data, and usually, better profit.

Here’s what makes them shine:

  • Hotel Website & Booking Engine – The home turf. Investing in UX, photos, videos, and a strong booking engine can drive impressive conversion without middlemen. Sure, there are costs (payment gateways, tech fees), but these are investments, not commissions.

  • Call Center / Phone Reservations – Still surprisingly effective for certain segments (think corporate, older travelers, or loyalty members). Costs exist, staff, training, telecom, but the human touch can seal deals that websites can’t.

  • Walk-ins – The most old-fashioned yet cheapest acquisition channel (zero commission, but unpredictable). A reminder that location, signage, and curb appeal still matter.

  • Email, CRM & Loyalty Programs – Goldmines for repeat business. The ROI here isn’t in raw bookings, but in guest lifetime value, which no OTA can deliver for you.

Check our Direct Distribution Comparison Table here


The smartest hoteliers know it’s not Direct vs. Indirect, it’s Direct and Indirect, strategically balanced.

Use OTAs to acquire new guests.
Use your direct channels to retain them.

The golden rule? “Don’t pay commission twice for the same guest.”

Distribution in hospitality isn’t just about selling rooms, it’s about managing visibility, profitability, and guest relationships across a constantly evolving landscape.

So, whether you’re fine-tuning your OTA mix, exploring next-gen platforms like HyperGuest, or optimizing your website conversion funnel, remember: Every channel has its cost, but also its purpose.

Mastering the mix is where true revenue management begins.

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